Boustead Heavy back in the black for Q4

PETALING JAYA: Boustead Heavy Industries Corp Bhd returned to the black in the fourth quarter ended Dec 31, 2016, registering a net profit of RM55.6 million, against a net loss of RM52.26 million in the preceding year’s corresponding quarter, driven by revised costs of its defence-related maintenance, repair and overhaul projects.
Revenue increased 59.6% from RM69.21 million to RM110.47 million.
The group has declared an interim single tier dividend of 3 sen per share for the financial year ending Dec 31 2017 which will be paid on March 30, 2017.
The group recorded a profit after tax of RM76.7 million for FY16 versus last year’s net loss of RM30.74 million. Revenue increased 15.8% to RM 307.52 million against RM 265.64 million in 2015.
“2017 would see the full effect of the internal reorganisation exercise and transformation efforts with focus on the three sectors, that is, defence & security, energy and commercial. The ongoing internal reorganisation is expected to be completed by end of June 2017,” said BHIC in a filing with the stock exchange.
It also noted that contracts awarded to Boustead’s joint venture companies, namely BHIC AeroServices Sdn Bhd, BHIC Bofors and Boustead DCNS Naval Corp Sdn Bhd are expected to contribute positively towards the future earnings of the group.